PORTLAND, Ore., March 15 /PRNewswire-FirstCall/ -- YoCream International, Inc. (Pink Sheets: YOCM), a manufacturer and wholesaler of frozen desserts and beverages, today reported the financial results for the first quarter ended January 31, 2010.  

(Logo: http://www.newscom.com/cgi-bin/prnh/20011003/SFW058LOGO-b)

Sales for the three months ended January 31, 2010 increased 6.6% to $9,214,000 compared to $8,642,000, for the first quarter in fiscal 2009. Net income for the quarter remains strong at $902,000 compared to $955,000 a year ago. Full quarterly report with management's discussion is posted at www.yocream.com and on Pink Sheets at www.otcmarkets.com.

Frozen yogurt sales to the general foodservice market remain robust at a growth rate of 30.9%. Sales of a specialty product to a major national chain were impacted by the establishment of a secondary supplier; however, the Company expects to remain as the major supplier for this account. The Company continues to work with large national accounts, and four more are presently in test with different products. The expansion of smaller regional chains and the increase in independent shops throughout the country continues to increase consumer awareness of frozen yogurt and the enjoyment of frequenting these fun establishments. The Company recognized the needs of entrepreneurs for education about frozen yogurt and sound foodservice operations and established YoCream University (YO - U™) in August 2009. This intensive two-day course on starting and operating a frozen yogurt business is offered monthly for a modest fee. Some YoCream University graduates have recently opened their businesses and more are set to open before summer 2010.

Frozen beverage category sales for the first quarter of 2010 increased 5.1%. The Company anticipates future growth in frozen beverages with customer commitments to feature newer flavors like Ice Breakers™ Sugar Free Berry Splash and Peach Dragonfruit. Sales of the core Jolly Rancher™ Watermelon and Green Apple flavors will be complemented by new Jolly Rancher™ Tropical Tremor™ Pomegranate, Mango, Sour Green Apple and Wild Berry flavors. These items are sold, especially in convenience stores, both as frozen carbonated beverages and also as frozen slushes.

YoCream International, Inc. is a world leader in the frozen yogurt industry. Since 1977, YoCream has pioneered the innovation, production and marketing of frozen yogurt and fruit-based frozen desserts and beverages. The Company operates a state-of-the-art production facility in Portland, Oregon, to manufacture its "true" frozen yogurt, which contains the real yogurt that is fermented and cultured on site daily. The Company offers over 110 flavors of frozen yogurt, ice cream, frozen custard, sorbet, smoothies, frozen carbonated beverages, slushes and frozen drink mixes. In addition to the YoCream brand, the Company also provides other branded flavors such as Hershey's™ (e.g. Hershey's™ Kisses™, Reese's™, York™, Jolly Rancher™, Twizzlers™, Bubble Yum™) and Rockstar™ under exclusive licenses. YoCream's end-user customers number in the thousands and include marquee convenience stores, quality quick service restaurants, warehouse stores, prestigious eating establishments, large grocery chains, frozen yogurt shops, colleges, military and government foodservice locations, international restaurants and neighborhood stores involving over 250 specialty and full line distributors in the supply chain.

This release may contain certain forward-looking statements, which are based on management's current expectations. Factors that could cause future results to vary materially from these expectations include, but are not limited to, change in distribution abilities, level of customer acceptance of new products, change in strategic alliances and other economic, competitive, governmental, and regulatory factors affecting the Company's operations, pricing, products and service.

    
    
    
                            YOCREAM INTERNATIONAL, INC.
                               STATEMENTS OF INCOME
    
              For the three months ended January 31, 2010 and 2009
                                   (Unaudited)
    
                                                 2010        2009
                                                 ----        ----
    
    Sales                                     $9,214,465  $8,641,900
    
    Cost of goods sold                         5,139,145   4,883,348
                                               ---------   ---------
    
            Gross profit                       4,075,320   3,758,552
    
    Operating costs and expenses
      Distribution expenses                    1,072,121     801,183
      Selling and marketing expenses             737,241     694,208
      General and administrative expenses        766,922     690,513
                                                 -------     -------
    
            Income from operations             1,499,036   1,572,648
    
    Other income (expense)
      Interest income                              7,535       9,195
      Interest expense                          (106,481)   (113,276)
                                                --------    --------
    
            Income before income taxes         1,400,090   1,468,567
    
    Income tax provision                        (498,400)   (514,000)
                                                --------    --------
    
            Net income                          $901,690    $954,567
                                                ========    ========
    
    Earnings per common share – basic              $0.35       $0.42
    
    Earnings per common share - diluted            $0.35       $0.40
    
    Shares used in basic earnings per share    2,607,898   2,262,210
    
    Shares used in diluted earnings per share  2,607,898   2,404,622
    
    
    

    
    
    
                            YOCREAM INTERNATIONAL, INC.
                                  BALANCE SHEETS
    
                                                  January 31,  October 31,
                                                     2010         2009
                                                  (Unaudited)
                                                  -----------  -----------
                           ASSETS
     Current assets
       Cash and cash equivalents                 $6,330,209  $12,118,067
       Accounts receivable, net of allowance
         for doubtful accounts                    2,879,450    2,542,618
       Inventories                                4,693,681    5,151,899
            Income tax receivable                         -      100,248
       Other current assets                         648,449      569,775
       Deferred tax assets                          243,775      243,775
                                                    -------      -------
    
           Total current assets                  14,795,564   20,726,382
    
     Fixed assets, net                           14,720,765   14,712,748
     Intangible and other long-term
      assets, net                                 1,180,499    1,196,655
     Deferred tax assets                            293,800      309,500
                                                    -------      -------
                                                $30,990,628  $36,945,285
                                                ===========  ===========
    
           LIABILITIES AND SHAREHOLDERS' EQUITY
    
     Current liabilities
       Note payable – line of credit              $       -    $       -
       Current portion of long-term debt            647,873      647,873
       Accounts payable                           1,959,943    3,440,694
       Income tax payable                           268,052            -
       Other accrued liabilities                    421,578      761,085
                                                    -------      -------
    
           Total current liabilities              3,297,446    4,849,652
    
     Long-term debt, less current portion         7,207,583    7,378,449
     Deferred tax liabilities                     2,151,975    2,144,975
     Other liabilities                              152,535      145,250
                                                    -------      -------
           Total liabilities                     12,809,539   14,518,326
                                                 ----------   ----------
    
     Shareholders' equity
       Preferred stock, no par value, none
        issued or outstanding                             -            -
       Common stock, no par value, 30,000,000
        shares authorized,                        7,750,865    7,750,865
        2,607,898 issued and outstanding as of
         January 2010 and
         October 2009
       Retained earnings                         10,901,524   15,172,494
       Accumulated other comprehensive income      (471,300)    (496,400)
                                                   --------     --------
    
           Total shareholders' equity            18,181,089   22,426,959
                                                 ----------   ----------
    
                                                $30,990,628  $36,945,285
                                                ===========  ===========
    
    
    

    
    
                            YOCREAM INTERNATIONAL, INC.
                             STATEMENTS OF CASH FLOWS
    
               For the three months ended January 31, 2010 and 2009
                                    (Unaudited)
    
                                                          2010        2009
                                                          ----        ----
    Cash flows from operating activities
      Net income                                        $901,690    $954,567
      Adjustments to reconcile net income to net cash
        used in operating activities
          Depreciation and amortization                  271,237     237,293
          Deferred income taxes                            7,000      18,000
          Change in assets and liabilities
            Accounts receivable                         (336,832)   (123,283)
            Inventories                                  458,218    (302,905)
            Other assets                                 (62,518)    (51,966)
            Accounts payable                          (1,300,077)   (379,206)
            Income taxes payable                         368,300  (1,131,800)
            Other accrued liabilities                   (332,222)   (376,872)
                                                        --------    --------
                Net cash used in operating
                   activities                            (25,204) (1,156,172)
                                                         -------  ----------
    
    Cash flows from investing activities
      Expenditures for fixed assets                     (459,928)   (797,696)
                                                        --------    --------
    
                Net cash used in investing activities   (459,928)   (797,696)
                                                        --------    --------
    
    Cash flows from financing activities
      Proceeds from line of credit                             -           -
      Principal payments on long-term debt              (130,066)   (112,199)
      Cash dividend payment                           (5,172,660)          -
                                                      ----------    --------
    
                Net cash provided by
                   (used in) financing activities     (5,302,726)   (112,199)
                                                      ----------    --------
                Net decrease in cash
                   and cash equivalents               (5,787,858) (2,066,067)
    
    Cash and cash equivalents, beginning of period    12,118,067   7,169,393
                                                      ----------   ---------
    
    Cash and cash equivalents, end of period          $6,330,209  $5,103,326
                                                      ==========  ==========
    
    
    

SOURCE YoCream International, Inc.

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http://www.yocream.com